AAM Statement: De Minimis Reform is Urgently Needed to Defend American Consumers and Workers

Tags Trade

Washington, D.C. – A bipartisan, bicameral team of Members of Congress introduced the Import Security and Fairness Act on Thursday. The legislation aims to close a U.S. Customs law loophole that exempts imports valued at $800 or less from tariffs and allows importers to dodge Customs inspection if the items are shipped directly to consumers. The Import Security and Fairness Act would prohibit goods from countries that both have non-market economies and are on the U.S. Trade Representative’s (USTR) Priority Watch List from benefiting from de minimis. 

Alliance for American Manufacturing President Scott Paul said:

“De minimis threshold reform is long overdue. Fast fashion companies like SHEIN routinely exploit this loophole to evade U.S. enforcement actions against China and other trade cheats. The Import Security and Fairness Act takes aim at the worst offenders, while also addressing loopholes used by bad actors to avoid paying taxes, duties and fees.

“The existing $800 threshold undermines trade enforcement actions designed to level the playing field for American workers. Furthermore, customers are put at risk, as SHEIN and other brands like Temu take advantage of this trade loophole to ship counterfeits, dangerous products, and goods produced with forced labor through U.S. Customs undetected.

“We strongly encourage Congress to adopt these reforms while also ensuring that additional steps are taken to monitor transshipments and increases in de minimis volume from other countries. Moving forward, it is our hope that Congress takes steps to lower the current $800 threshold, which is excessive, wildly misaligned with many of our trading partners, and invites wrongdoing.

“Voters want de minimis reform. It’s time for Congress to act.”

A majority of voters (59%) support reforming de minimis customs law to include shipments valued below $800, according to polling conducted by Morning Consult for the Alliance for American Manufacturing. An overwhelming majority of Americans (87%), regardless of political affiliation, want the federal government to crack down on unfair trade practices.